AGCO issues $200,000 in penalties to Cannabis Xpress for alleged illegal agreements with cannabis producers
After receiving information regarding inducement activity, the AGCO undertook compliance inspections of Cannabis Xpress, including a review of over 82,000 relevant documents, and found that Cannabis Xpress’s so-called “Data Services Program” and/or other agreements, which it entered into with licensed cannabis producers (LPs) are, in fact, an inducement program.
- After receiving information regarding inducement activity, the AGCO undertook compliance inspections of Cannabis Xpress, including a review of over 82,000 relevant documents, and found that Cannabis Xpress’s so-called “Data Services Program” and/or other agreements, which it entered into with licensed cannabis producers (LPs) are, in fact, an inducement program.
- The AGCO is committed to ensuring that the cannabis retail sector operates with honesty, integrity and in the public interest.
- “Provincial law and AGCO standards include anti-inducement regulations to protect consumer choice and maintain a level playing field for small businesses in the cannabis retail industry.
- The AGCO monitors the sector’s compliance with these requirements and will take strong action against any licensee found to be engaging in illegal behaviour.”